BingX, a crypto exchange, has found a way for Iranian users to bypass sanctions by openly catering to them on its platform. The exchange has created an Iranian version of its website and even communicates with users in Persian on its official Telegram group. In a translated statement, BingX expressed its willingness to accommodate Iranian users, stating that they can even authenticate their accounts using a national card.
However, this move goes against the rules set by the United States Treasury Department’s Office of Foreign Assets Control (OFAC). These rules prohibit exchanges from allowing Iranian rial to Tether (USDT) swaps. Despite this, BingX still enables these swaps on its platform.
The sanctions imposed on Iran since 1979 have restricted its residents from using centralized cryptocurrency exchanges. Exchanges that engage with Iranian users risk being blocked from global markets. According to OFAC, foreign financial institutions face severe consequences if they knowingly facilitate transactions involving the Iranian rial.
Despite the requirements imposed on financial institutions, BingX openly encourages Iranian users to join its platform through various social channels and its official website. Previously known as Bingbon, BingX was founded by Josh Lu in 2018 and claims to have over 10 million users. The nationality of its current founder remains unknown.
BingX is not the only licensed crypto exchange that has been caught circumventing sanctions for Iranian users. Binance, the world’s largest crypto exchange, was accused of serving Iranian citizens in July 2022. Binance denied the claim and stated its strict adherence to sanctions requirements. However, in November 2023, Binance reached a $4.5 billion plea deal with the US Justice Department and the US Treasury, admitting to failing in its anti-money laundering policy.
In May 2023, Poloniex, another crypto exchange, paid a $7.6 million settlement to the OFAC for failing to properly screen users from sanctioned countries.
BingX continues to operate despite the risks involved, openly advertising its services for Iranian users to buy and sell Iranian rial using Tether. This practice raises concerns about the exchange’s compliance with sanctions requirements and the potential consequences it may face in the future.